Finance Ministry Launches IMF-Backed Tax Policy Unit

The Finance Ministry has formally established a Tax Policy Analysis Unit (TPAU) under the Department of Fiscal Policy, marking a key institutional reform aimed at strengthening Sri Lanka’s fiscal management framework.

The operational launch followed a two-week capacity-building programme conducted by the International Monetary Fund from January 19 to 30, focused on tax policy analysis and reform design. An IMF mission team later met with Treasury Secretary Dr. Harshana Suriyapperuma and senior fiscal officials to discuss the Unit’s role in supporting revenue-based reforms.

According to the Ministry, the TPAU will be responsible for revenue analysis, assessment of the economic and distributional impact of tax measures, evaluation of tax expenditures, stakeholder engagement, and work on international taxation.

The initiative comes as Sri Lanka seeks to consolidate record tax collections achieved in 2025 and address investor concerns over policy reversals and weak costing of tax measures under the IMF-supported adjustment programme.

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